Women and Long-Term Care Readiness:
For women, long-term financial planning takes on special significance. Whether it's due to age-related conditions, chronic illnesses, or unexpected health crises, planning for long-term care is crucial for ensuring lifelong wellness. Here’s why it matters and how women can take proactive steps to be ready.
Why Long-Term Care Planning is Crucial for Women
According to the U.S. Centers for Disease Control and Prevention, the average life expectancy for women is about 80 years, compared with 75 years for men.1 This means that women have a greater probability of suffering from chronic conditions like osteoporosis, arthritis, and Alzheimer’s disease. Each of these ailments typically means greater caregiving and support needs.
Because women’s earnings are, on average, lower than men’s throughout a lifetime, it's all the more important to plan for future care needs now. Proper planning can be a buffer against the potential financial stresses that might otherwise develop as a result of lowered earnings or time spent out of the workforce.
Steps to Prepare for Long-Term Care
● Understand your needs: First, it's important to understand what your future needs may be. Think back through your family history, your lifestyle, and any pre-existing health conditions that could affect your long-term care needs.
● Financial planning: Assess your current situation and retirement needs – your assets and liabilities today, your likely cash flow picture during retirement, your likely need for care, the cost of care in your area, your current savings and investments, and other potential income streams in retirement. Work with a financial professional who will help you incorporate long-term care planning in a comprehensive approach to your financial plan.
● Consider insurance: Long-term care insurance may help cover the cost of services that aren't covered by health insurance or Medicare. Do your research, evaluate policy options, and select a plan that works for you and your budget.
Empowering Women Through Knowledge
Knowing is half the battle. Understanding the landscape of long-term care can help women determine how to make the best choices for their future. There are a few actionable things many women should consider:
● Medicare and Medicaid: Under both Medicaid and Medicare, institutional care costs like nursing home care are covered to a certain extent. Ultimately, only Medicaid will cover long-term care on an extended basis. However, eligibility for Medicaid is quite strict.
● Cost: Long-term care can be expensive, and you should know the costs of service options. The National Council on Aging estimates that the median cost for a private room in a nursing home is over $9,000 per month.2
● Consider community resources: Learn what community resources are available to support your long-term care needs. These programs and services offered by community agencies may include adult day care, home care, services for persons with disabilities, and support groups for both the caregivers and the persons they are caring for.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
LPL Tracking #609862
Footnotes:
1 “Mortality in the United States, 2022,” Centers for Disease Control and Prevention, https://www.cdc.gov/nchs/products/databriefs/db492.htm
2 “Nursing Home Costs and Payment Options,” National Council on Aging, https://www.ncoa.org/adviser/local-care/nursing-homes-costs/
